JPMorgan's blockchain report: mainstream adoption is still years away

Quick Take

  • This year’s JPMorgan Perspectives report contends that blockchain has seen more extensive use among companies like stock exchanges, although mainstream adoption is still likely years away.
  • According to the 74-page report, banks are increasingly using distributed ledger technology (DLT) to build their settlement/clearing and collateral management systems.
  • It also notes that “the crypto market continues to mature, and cryptocurrency trading participation by institutional investors is now significant.”

JPMorgan published a wide-ranging report on blockchain this week, touching on the technology's prospects for mainstream adoption and the viability of stablecoins such as the Facebook-backed Libra project.

This year's JPMorgan Perspectives report contends that blockchain has seen more extensive use among companies like stock exchanges, although mainstream adoption is still years away.

Among the key conclusions from the report's authors: they "see the long-term potential or Distributed Ledger Technology (DLT) to transform banks' business models by providing efficient and resilient information transfer and storage once sale has been achieve..." But that declaration comes with the caveat that the pace of progress will depend on resolving legal and technical concerns, particularly "cross-platform integration."

"While we see widespread implementation of blockchain solutions at least three to five years away, challenges such as the macro-economic environment, legal and regulatory frameworks and technical challenges—such as cross-platform integration—may decelerate further progress," the report states.

According to the 74-page report, banks are increasingly using distributed ledger technology (DLT) to build their settlement/clearing and collateral management systems. It also notes that "the crypto market continues to mature, and cryptocurrency trading participation by institutional investors is now significant."

A close look at Libra

JPMorgan's report features a detailed analysis of Libra – the Facebook-backed stablecoin project that debuted last summer and has since attracted the attention of the world's policymakers, including central bankers.